From Foam to Fiber: The Chill Shift in U.S. Packaging

Closed Loop Partners backs TemperPack with $10M to scale recyclable fiber insulation for cold-chain shipping.

8 Oct 2025

America’s cold-chain packaging is getting a sustainable makeover. Closed Loop Partners, an investment firm focused on circular-economy ventures, has lent $10m to TemperPack, a producer of paper-based insulation for chilled goods. The deal reflects a growing push to replace Styrofoam, or expanded polystyrene (EPS), with materials that are easier to recycle.

TemperPack’s fiber insulation performs much like EPS, keeping groceries, meal kits and medicines cool in transit, but can be recycled in ordinary curbside bins. The company plans to use the new funds to expand production and refine its technology as retailers seek cleaner, regulation-ready packaging.

Momentum is building from both regulators and consumers. New York and California have banned foam packaging outright; Washington and Vermont are phasing it out. Such rules are prompting grocers and delivery firms to find alternatives that combine thermal reliability with environmental credibility.

“TemperPack is a prime example of a company reducing environmental impact through scalable innovation,” said Jennifer Louie, managing director of Closed Loop Partners’ credit strategy. Peter Wells, TemperPack’s boss, called the financing “a catalyst to expand our capacity and reduce waste across food and healthcare shipments.”

The shift is not without hurdles. Fiber-based materials must withstand long-distance routes and high temperatures. Recycling systems remain patchy, meaning much paper packaging still ends up in landfill. Yet the direction is clear. As policy, innovation and consumer preference align, recyclable insulation is moving from niche to norm.

For the food industry, the message is simple: sustainability is no longer a branding exercise but a business requirement. Those that master the balance between performance and responsibility are likely to define the next phase of cold-chain logistics.